Why won't anyone help us out?! :-(

Dave_Ham

I stand corrected, not sure what bank has those sorts of facilty available in branch?

That said, given the occupancy detail this will need to be a non conventional lender as sits between residential and commercial and I suspect neither will want to get involved.

I guess you knew that and hence why you started the thread, although unless you presented the house differently or traded differently I am not sure you will hit a mainstream solution.

Outside the box stuff is likely to be more expensive and available, although again you probably are aware of this.

All the best

EMac_2

I recently sorted a similar case with a commercial loan. Whilst not wanting to get shot down can I ask why after 9 months you haven't split the title deed and made any required alterations to the property in order to do so. This would divide the resi from the commercial parts and you could more easily remo the resi part and take out the bridge. Having a semi-commercial property like this is especially tricky to lend on these days, (ah good old Mortgages plc where are you now) but you know this. Hopefully your bank manager is a rare bread who still has a mandate to sign off this type of loan otherwise they will struggle to get this through credit. Even as a commercial deal there may just be too big a resi element to make this fit. Be interesting to know how you have this place insured considering the differing elements of residential, tenanted and commercial on a single title deed. Best of luck

Senior_Paper_Monitor

I'll enter this with some trepidation as there seem to be a lot of toys flying from various prams at the moment.

The problem that you face is that it will now have to be a regulated (as more than 40% of floor area is occupied by the owner or their family) commercial (as it is clearly a mixed use property).

I have a strong suspicion that the original bridging finance lender will have done this as a none regulated commercial loan (as there are very few - if any - currently able to provide regulated loans), on the basis in you and your family lived at the house you are about to sell.

Non regulated lenders can (as Let us See stated) take first charge no problem - BUT not on properties that are the residence of the borrower.

There is a severe danger that you are about to fall between the devil and the deep blue !

Whether it is possible for you to move into rental accommodation locally (removing the regulated requirement) and obtain commercial/development finance to complete and divide the property is impossible to judge without knowing all about your circumstances and plans.

Certainly - as others have already said - the best hope you have in the short term is to get your current lender to extend (but its not cheap - as you already know) and that isn't a long term option. They will also be very nervous about the resdidency issue.

This is certainly going to be a complicated (if not impossible) financing package - even with the property split, appropriate business plans and good credit/income this is not going to be easy.

Senior_Paper_Monitor

I've just realised something and run back through the thread - will the sale of your original property pay off all the loan on the new one (leaving you unencumbered) or will you need finance to continue living in and/or renovating the new one ?

If the debt is covered by equity in the 'to be sold property' then bridging second charge against that will be easiest option - the level of loan will depend on nature of sale contract.

A further thought: Frankly - if someone led you into the bridging loan without a clear exit strategy (see my previous question) they want their bumps felt ! Exit strategy is a key part of any bridging consideration.